New Delhi: Shares of Asian Paints Ltd, India’s largest decorative paints maker, rose around 1.6% to ₹2,397.80 on Monday after a domestic brokerage highlighted several favourable developments for the company’s outlook, including a significant fall in crude oil prices that could provide relief on key raw material costs.
Brent crude — a major input price driver for paint manufacturers — was down about 5% on the day, providing a near-term cost tailwind for the sector and potentially supporting margins for Asian Paints and peers.
The broker expects Asian Paints to deliver volume growth of about 11% in the January-March quarter, citing improving cost dynamics and a shift towards more rational competitive behaviour in the paints industry.
Analysts also noted signs that promotional intensity — such as deep discounts on popular 4-litre packs — may recede after aggressive pricing earlier in the year.
From a valuation standpoint, the brokerage said Asian Paints is now trading in a more comfortable zone after recent softness, providing some support to sentiment.
The broader paints sector has been under pressure in recent months amid intense competition and mixed quarterly results, including a modest profit decline reported by Asian Paints in Q3 FY26.
Investors will be watching how crude price trends and competitive dynamics evolve, especially with new entrants and rival strategies shaping market share battles ahead of the key March quarter results.